Percentage of production private practice vs corporate?

[plexi]

Hello-

Sorry if this has already been covered, I searched the old threads and mainly only found comparisons about the benefits of working at a private practice vs corporation.

I am a year out of dental school and have been working at a corporate office in California. The corporate office takes basically all insurance, HMO and PPO. I get paid 28% of production currently plus whatever benefits. I have been offered a position at a private practice where they only see PPO patients. However they are offering me only 25% of production for the first $2000 then 28% after that and possibly a higher % for production higher than $3000.

Is there a reason that I will be making more production at the private practice office seeing only PPO patients that would make up for the decreased percentage of production? I already know there are many other benefits to private practice and that is why I am looking to move in that direction but I would like to be fully informed when negotiating for my contract.

Thanks!

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[Lesley]

Hello-

Sorry if this has already been covered, I searched the old threads and mainly only found comparisons about the benefits of working at a private practice vs corporation.

I am a year out of dental school and have been working at a corporate office in California. The corporate office takes basically all insurance, HMO and PPO. I get paid 28% of production currently plus whatever benefits. I have been offered a position at a private practice where they only see PPO patients. However they are offering me only 25% of production for the first $2000 then 28% after that and possibly a higher % for production higher than $3000.

Is there a reason that I will be making more production at the private practice office seeing only PPO patients that would make up for the decreased percentage of production? I already know there are many other benefits to private practice and that is why I am looking to move in that direction but I would like to be fully informed when negotiating for my contract.

Thanks!

Production at a dental office is determined by the office fee schedule. Collections are what the insurance company allows a contracted dentist, dental office, for a dental service regardless of the office's fee schedule. Collections are almost always lower than office fee schedules, sometimes significantly 20-50%, more so for HMO's than PPO's. If you are paid a percentage of your collections, you most likely would be making more at a PPO practice even at 25%. If you are paid based on production, the office with the higher fee schedule may be a better choice. You should take a look at other other benefits, such as health insurance insurance, vacation time to see if they are on par if not better than what you have now.